Financial literacy is crucial for women entrepreneurs
By the age of 23, Nicola Jackson had already buried three children and was overworking herself at a hair salon just to make ends meet. Twenty-five years later, Jackson is a serial entrepreneur who helps more than 450,000 sales reps in more than 30 countries provide legitimate financial services to women entrepreneurs looking to reduce debt and change their lifestyles.
The ongoing battle to address systemic injustice and inequality has far-reaching effects on financial well-being. The Covid-19 pandemic has revealed that women have been disproportionately affected when it comes to financial inclusion and equality.
In 2020, a Pew Research Center analysis reported that women earned 84% of what men earned, while in 2019 women earned 82 cents to every dollar earned by men. To add insult to injury, these gender gaps only amplify the disparity, as women have been placed on the frontlines of the pandemic as essential workers.
The current financial crisis facing women is the most pressing and must be addressed by further exploring systemic inequalities, gender stereotypes and roles. By taking a proactive stance on financial literacy, we can seek to close the gender financial inclusion gaps by engaging, educating and encouraging more women to take control of their finances and maintain that wealth.
“Lack of financial literacy is actually one of the biggest reasons people around the world struggle to save money and invest appropriately,” says Jackson, Founder and CEO of Pink Millionaires Club. “On the other hand, financially savvy people are able to better manage their money, plan for the long term, and start their own businesses from scratch that eventually become profitable. I help everyday people become extraordinary entrepreneurs through home-based businesses while helping them create a mindset of wealth and leadership,” she added.
But it’s not an overnight process, especially when there’s so much information on the internet and you need to be able to discern valuable information from mere buffoonery.
Here are three ways Jackson says women entrepreneurs can take control of their financial mindset.
It doesn’t matter where you’re from – how hard you work
One of Nicola’s most important tips is that it doesn’t matter where you come from. You don’t have to have a college degree or have rich parents to build wealth. She reached the top 1% of her industry without any of these things. However, success requires sacrifice, hard work and dedication. If you are willing to put in the work, it will be rewarding. Nicola warns people that there is never a perfect time to start anything.
“I didn’t have the best upbringing, having dropped out of college and buried three kids at 23, but nonetheless, I made it to the top 1% in my industry without a degree or inherited wealth,” Jackson recalled. “It’s important to avoid procrastination, because the sooner you get into your dreams, the sooner you’ll achieve them. There’s never a perfect time to start anything, so why wait? »
Money mistakes will happen – but will you learn from them?
For those currently struggling, Nicola has some key advice. “First, money mistakes are just things you’re supposed to learn from. If you feel like you’ve reached a breaking point, take a step back and don’t get caught up in a state of sadness or anger over financial issues. Instead, view mistakes simply as challenges for you to make changes. From there, develop a clear vision for your financial life. This vision helps you reach and achieve your goals as long as you put in the effort to improve yourself.
For those currently struggling, one of the biggest truths you need to digest moving forward is that money mistakes are going to happen. “You just need to be able to learn from them,” Jackson says. “Even if you feel like you’ve reached a breaking point, don’t confuse stepping back with losing yourself in a state of sadness or anger. Think of these mistakes as challenges for you to make a change.
Forgive yourself, learn the lesson, and move on.
Choose a niche
New entrepreneurs make the mistake of thinking that they can solve a problem for “everyone” or that their product/service can be used by everyone. It’s a quick way to kill any business. It is important to identify a clear and segmented market to which you can provide an immediate solution.
“If you get lost in the idea that you can help everyone at the same time, you’re doomed to fail,” says Jackson. “For me, I’m extremely passionate about helping mothers of all ages and women entrepreneurs, which gives me insight into how to deliver the solutions I offer.
“Women are a crucial part of the entrepreneurial world and they are the agents of change that this industry needs. Only by empowering other women both at work and at home will we bring about a major change in our financial inequity. If we want to help close the country’s economic and gender wage gap, we must seek personalized ways to teach financial literacy that haven’t been taught in schools and, sadly, still aren’t.